Does Beverly Hills Real Estate Favor a Buyer's or a Seller's Market?

Based on past sales, we can tell by the absorption rate which way the Beverly Hills real estate market is leaning.

What is absorption rate? Absorption rate is the number of months it will take to sell an existing inventory based on a previous month's sales. Six months' worth of inventory is a stable market; under six months favors sellers, and over six months favors buyers.

This does not mean that sellers can overprice their homes in a seller's market. This will lead to a shift in the other direction, with their home sitting on the market and adding to existing inventory. But if priced right, it will sell quickly and in multiples.

A buyer's market often becomes one because the market is flooded with foreclosures, short sales and overpriced homes.  

Luxury real estate markets like Beverly Hills are generally buyer's markets. Sellers don't necessarily have to sell and buyers are not out there in the droves buying multi-million dollar properties.

Based on the past six months' sales in Beverly Hills, condos under $1 million and single family homes under $5 million are still a seller's market.